This week, we will be looking at FrasersCT(J69U). This stock has had a good run since early 2012. It has been above the ichimoku cloud since late February 2012. Price action has never went into the kumo cloud until recently in last December
Technical Analysis (Ichimoku Chart)
Tenkan sen cut below the kijun sen the second time in recent periods. Price action had also went below kijun sen. In addition, price action is in the kumo cloud. Chikou span has also cut below the kijun-sen. The forward kumo cloud is getting thinner.
Trading Strategy (Ichimoku Trading)
Current price level is a good level for new position takers to come in and acquire the stock. Also, stop loss level will be tight, just below the ichimoku cloud level, around 1.90. Due to thin cloud ahead, the price action could be choppy. If sentiments are that the stock has had a good run and coming to end, look to short with price level below 1.90 and stop loss at 2.02 during initiation and adjust lower just above cloud hi.
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